Data Point: Demystifying the University of Michigan Consumer Sentiment Survey - January 2023

Katie Nixon, chief investment officer at Northern Trust Wealth Management, breaks down 2023’s first University of Michigan Consumer Sentiment Survey. The survey — which tracks how respondents feel about the economy — offers a valuable window into consumer behavior, making it key for policymakers and investors.

While January’s survey reflected plenty of optimism, with inflation expectations receding for the fourth month in a row, it wasn’t all good news. Two-thirds of consumers expected an economic downturn in the next year. How will that affect future inflation? And what does it mean for the trajectory of Federal Reserve policy?

Join Katie as she interprets the survey’s findings, from concern about a wage-price spiral to the Fed’s silver lining — and why it should matter to you.  

Highlights:

• Consumer sentiment on personal finances & durable goods (0:40)
• Inflation expectations & the wage-price spiral (1:02)
• Consumers expect economic downturn (1:45)
• Why investors and policymakers value sentiment data (2:00)
• Why the January responses are a win for the Fed (3:21)
• The silver lining to consumer pessimism (3:46)

Links:

• University of Michigan Consumer Sentiment Survey
• Northern Trust - Wealth Management
• Northern Trust Twitter
• Katie Nixon Bio
• Katie Nixon LinkedIn

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